Hercules’ Leading Originations Platform Continues to Finance Some
of the Most Promising Innovative and Disruptive Venture-Backed
Companies in the Market

PALO ALTO, Calif.--(BUSINESS WIRE)--
Hercules
Capital, Inc. (NYSE: HTGC) (“Hercules” or the “Company”), the
leading specialty financing provider to innovative venture growth stage
companies backed by leading venture capital firms, is pleased to
announce the latest liquidity events for eight (8) of its portfolio
companies: DocuSign, Inc., Tricida, Inc. and BridgeBio Inc./Eidos
Therapeutics, Inc., which recently completed their initial public
offerings (“IPO”); and Inotek Pharmaceuticals Corporation, Neothetics,
Inc., IntegenX Inc., FanDuel and RazorGator, Inc., all of which recently
completed or announced a merger or acquisition.

IPO Events

In April 2018, Hercules’ portfolio company, DocuSign Inc. (NASDAQ:
DOCU), a company that provides electronic signature technology and
digital transaction management services for facilitating electronic
exchanges of contracts and signed documents, completed its IPO debut
raising approximately $725.0 million pricing 25.0 million shares at
$29 per share.

Hercules currently holds 385,000 shares of
common stock at $15.79 per share as of March 31, 2018, representing an
unrealized gain of approximately $15.2 million and $0.18 in Net Asset
Value increase, based on the closing price of $55.35 for DocuSign
on July 9, 2018. The unrealized gain may increase or decrease as the
stock price of DocuSign moves up or down from its closing price
on July 9, 2018, thereby impacting Hercules’ eventual realized gain or
(loss).

In June 2018, Hercules’ portfolio company, Tricida, Inc. (NASDAQ:
TCDA), a late-stage pharmaceutical company focused on the development
and commercialization of its lead product candidate, TRC101, a
non-absorbed, orally-administered polymer drug design to treat
metabolic acidosis in patients with chronic kidney disease, completed
its IPO raising approximately $255.6 million pricing 13.5 million
shares at $19.00 per share.

Hercules initially committed
$75.0 million in venture debt financing in February 2018. Hercules
currently holds warrants for 53,458 shares of common stock and holds
105,260 shares of common stock as of June 30, 2018, and has a
potential unrealized gain of approximately $1.9 million, based on the
closing price of $30.50 for Tricida on July 9, 2018. The
unrealized gain may increase or decrease as the stock price of Tricida
moves up or down from its closing price on July 9, 2018, thereby
impacting Hercules’ eventual realized gain or (loss).

In June 2018, Hercules’ portfolio company, Eidos Therapeutics, Inc.
(NASDAQ: EIDX), a clinical stage biopharmaceutical company focused on
addressing the large and growing unmet need in disease caused by
amyloidosis, which is a majority-owned subsidiary of Hercules’
portfolio company, BridgeBio Inc., a clinical-stage biotech
company developing novel, genetically targeted therapies to improve
the lives of patients, completed its IPO raising approximately $122.2
million pricing 7.2 million shares of common stock at $17.00 per share.

Hercules
currently holds 15,000 shares of common stock as of as of July 9, 2018
and has a potential unrealized gain of approximately $142,000 based on
the closing stock price of $22.76 for Eidos on July 9, 2018.
The unrealized gain may increase or decrease as the stock price of Eidos
moves up or down from its closing price on July 9, 2018, thereby
impacting Hercules’ eventual realized gain or (loss).

Realized Gain Events

In October 2017, Hercules’ portfolio company ForeScout
Technologies, Inc. (NASDAQ: FSCT), a leading Internet of Things
security company, completed its IPO. Hercules held 199,842 shares of
common stock, as of March 31, 2018.

Subsequent to March 31,
2018, Hercules liquidated its entire position in ForeScout and
recognized a net realized gain of approximately $5.7 million from the
IPO.

In July 2018, Hercules’ portfolio company FanDuel, a leading
U.S. daily fantasy sports operator, was acquired by Paddy Power
Betfair plc (LON: PPB), an international, multi-channel sports betting
and gaming operator, and combined with Paddy Power’s U.S. business
(Betfair US). Under the agreement, the cash contribution was used to
pay down existing FanDuel debt and fund working capital of the
new combined businesses.

Hercules initially committed $20.0
million in venture debt financing, including $1.0 million in
convertible debt, in October 2016, and held warrants for 15,570 shares
of common stock and 4,648 shares of Preferred Series A stock as of
March 31, 2018. Subsequent to the close of the transaction, Hercules’
term loan was paid off in full, along with the convertible debt and
warrants. The potential realized gain from the transaction is
approximately $1.7 million.

Portfolio Companies IPO Filings

As of July 9, 2018, Hercules held warrant and equity positions in two
(2) portfolio companies that had filed confidential Registration
Statements under the JOBS Act with the Securities and Exchange
Commission in contemplation of a potential IPO. There can be no
assurances that companies that have yet to complete their IPOs will do
so.

Potential Liquidity Events

Hercules holds equity and warrant positions in 53 and 134 portfolio
companies, respectively, as of March 31, 2018, representing potential
future additional returns to investors. There can be no assurances that
all companies may complete their initial public offering or complete an
M&A event.

M&A Events Announced or Completed

In January 2018, Hercules’ portfolio company Inotek Pharmaceuticals
Corporation (NASDAQ: ITEK), a clinical-stage biopharmaceutical
company focused on the discovery, development and commercialization of
therapies for ocular diseases, completed their merger agreement with
Rocket Pharmaceuticals Ltd.(NASDAQ: RCKT), a leading US-based
gene therapy company. The combined company operates under Rocket
Pharmaceuticals, Inc. (NASDAQ: RCKT).

Hercules committed
$1.5 million in venture debt financing to Inotek in August 2007 and
held 944 shares of common stock as of March 31, 2018.

In January 2018, Hercules’ portfolio company Neothetics, Inc. (NASDAQ:
NEOT) a clinical-stage specialty pharmaceutical company that has been
focused on developing therapeutics for the aesthetic market, completed
their merger agreement with privately-held Evofem Biosciences, Inc., a
wholly-owned subsidiary of Neothetics. in an all-stock transaction. In
January 2018, Evofem completed the reverse merger acquisition of
Neothetics. The merged company is now operating as Evofem Biosciences,
Inc. (NASDAQ: EVFM).

Hercules initially committed $10.0
million in venture debt financing in June 2014, and currently holds
warrants for 7,806 shares of common stock as of March 31, 2018.

In March 2018, Hercules’ portfolio company IntegenX Inc., the
market leader of rapid human DNA identification technology for use in
forensics and law enforcement applications, was acquired by Thermo
Fisher Scientific Inc., the world leader in serving science. Terms of
the transaction were not disclosed.

Hercules initially
committed $17.5 million in venture debt financing in June 2016.

In May 2018, Hercules’ portfolio company RazorGator Inc., an
online ticket reselling platform for sports, theater and concert
tickets, and vacation packages for sporting events, was acquired by
TickPick, an online ticket marketplace to buy, bid on and sell tickets
on sports, concerts and other live events. Terms of the transaction
were not disclosed.

Hercules initially committed $5.0
million in venture debt financing in January 2005, and currently holds
34,783 shares of Preferred Series AA stock as of March 31, 2018.

About Hercules Capital, Inc.

Hercules Capital, Inc. (NYSE: HTGC) (“Hercules”) is the leading and
largest specialty finance company focused on providing senior secured
venture growth loans to high-growth, innovative venture capital-backed
companies in a broad variety of technology, life sciences and
sustainable and renewable technology industries. Since inception
(December 2003), Hercules has committed more than $7.6 billion to over
420 companies and is the lender of choice for entrepreneurs and venture
capital firms seeking growth capital financing. Companies interested in
learning more about financing opportunities should contact info@htgc.com,
or call 650.289.3060.

Hercules’ common stock trades on the New York Stock Exchange (NYSE)
under the ticker symbol "HTGC." In addition, Hercules has four
outstanding bond issuances of 6.25% Notes due 2024 (NYSE: HTGX), 4.375%
Convertible Notes due 2022, 4.625% Notes due October 2022 and 5.25%
Notes due 2025 (NYSE: HCXZ).

Forward-Looking Statements

This press release may contain “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995. You
should understand that under Section 27A(b)(2)(B) of the Securities Act
of 1933, as amended, and Section 21E(b)(2)(B) of the Securities Exchange
Act of 1934, as amended, or the Exchange Act, the “safe harbor”
provisions of the Private Securities Litigation Reform Act of 1995 do
not apply to forward-looking statements made in periodic reports we file
under the Exchange Act.

The information disclosed in this press release is made as of the date
hereof and reflects Hercules most current assessment of its historical
financial performance. Actual financial results filed with the SEC may
differ from those contained herein due to timing delays between the date
of this release and confirmation of final audit results. These
forward-looking statements are not guarantees of future performance and
are subject to uncertainties and other factors that could cause actual
results to differ materially from those expressed in the forward-looking
statements including, without limitation, the risks, uncertainties,
including the uncertainties surrounding the current market volatility,
and other factors the Company identifies from time to time in its
filings with the SEC. Although Hercules believes that the assumptions on
which these forward-looking statements are based are reasonable, any of
those assumptions could prove to be inaccurate and, as a result, the
forward-looking statements based on those assumptions also could be
incorrect. You should not place undue reliance on these forward-looking
statements. The forward-looking statements contained in this release are
made as of the date hereof, and Hercules assumes no obligation to update
the forward-looking statements for subsequent events.